15 million homeowners are planning renovations and 35% will borrow to finance them

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15 million (46%) UK homeowners plan to improve their homes over the next year, reaching over half (55%) for those with net assets over £ 250,000.

One-fifth (22%) prioritize exterior renovations, including landscaping the garden, paving and walkways, or adding a pool or hot tub, according to new research from Selina Advance .

In fact, this “curb appeal” is a key factor in home renovations, as one in five (17%) homeowners who have done renovations in the past year have done so to have such a good home, or the best home. best home, among his neighbors or friends.

Fintech Selina Advance found that aside from exterior improvements, bathroom renovations are a key priority for almost 3 million Brits (9% of all homeowners), followed by kitchen extensions or renovations (6%) . 1.3 million homeowners plan to upgrade their home’s smart technology and a further 4% plan to make their homes more sustainable, for example with solar panels (14% and 10% respectively among 18-34 year olds).

Over the past year, Selina Advance has found that more than half of all homeowners (55%) have made improvements to their homes, reaching three-quarters (75%) of 18-34 year olds and 69% of those living in London. The main motivation was to add value to their home (23%), followed by creating a more entertaining space (18%). One in ten (11%) made improvements to enable home working, reaching 16% of 35-54 year olds, and 8% wanted to create space for children and growing families (up to 14% of 18-34 years).

Hubert Fenwick, Co-Founder of Selina Advance, said: “Recent closures have made us all think differently about our homes and it’s made a lot of us ambitious about how we want our homes to look, feel and function. . This is expected to continue as 15 million more Britons aim to modernize their homes over the next 12 months and many of them will benefit from using a HELOC which offers greater flexibility and affordability. You pay only for what you need, when you need it.

New research from Selina Advance also found that more than a quarter of homeowners (26%) have used the credit to finance home improvements made in the past year (22% have used unsecured credits such as cards or loans and 9% remortgage), rising to 34% among those with net assets over £ 250,000 (28% with unsecured credits such as cards and loans and 13% remortgage).

Likewise, of those planning renovations over the next year, 35% plan to use the credit (32% with unsecured credit like a credit card or loan and 10% plan to remortgage). Among those with higher assets (£ 250,000 +), almost four in ten (39%) plan to use some form of credit (including 13% planning to remortgage).

Mr Fenwick said: “A third of homeowners say they plan to borrow to finance the work on their home and we know it can be expensive. HELOCs offer a new way for those homeowners who have worked hard to build equity in their property, allowing them to borrow affordably, responsibly, and with the flexibility that is often needed on these projects.

“As a homeowner, you are rewarded with low rates compared to most other forms of unsecured personal credit (bank loans or credit cards) while having more flexibility than a mortgage can offer, and you don’t have a prepayment charge and can borrow larger sums of money over the longer term, making monthly payments very affordable.

The great flexibility of HELOC means that owners can enjoy benefits such as accessing their money when they need it and only paying interest on the funds they use, when they choose to use them. In addition, homeowners can enjoy unlimited withdrawals for five years and there are no prepayment charges for the duration of the contract. This is especially handy if home renovations are over or under budget, as homeowners have control over how they use their line of credit.

Mr Fenwick said: “We are proud to be the first to bring HELOCs to UK consumers using fintech innovation to meet customer needs and benefit from their home equity in a simpler and more efficient way. affordable. We hope to stand up for homeowners and help those who want to modernize their homes sooner and benefit from the equity they have built up in their home. Many banks or lenders do not make the process easy for homeowners when making lending decisions. We do, which is why we can offer low interest rates and real flexibility with this pioneering product.

For more stories of where you live, visit InYourZone.


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